The CEO of America’s largest utility, EXELON, foresees blackouts in the US in 2027. To boost power supply Calvin Butler wants states to allow his utility to build new power plants. Opponents will object, saying this would saddle utility consumers with the risks. Whereas now, the builders take the risks. Meanwhile, we are scratching our heads because economists have long theorized that utilities build excess rate base in order to raise earnings. We would amend this to argue that utility managers only deploy excess capital when they can earn…

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